In re States Motors, Inc.

PICARD, District Judge.

Statement of Facts

State Motors, Inc., the bankrupt herein, was indebted to the Treasury Department, Internal Revenue, for employees’ social security and withholding taxes covering the third quarter of 1950. Previous to bankruptcy and about November 9, 1951, bankrupt’s assets were sold and its president drew checks from the proceeds thereof to pay its debts. One check for $1,090.94 had been executed previously on November 16, and certified on or near that date, in favor of the Treasury Department to cover the deficit on the 1950 third quarter. It is conceded that this…